To obtain a money transmitter license, every state requires a surety bond. Depending on your state, this license may be called money remitter, money services business, check casher, or sales of check license. In Florida, it is referred to as a Florida MONEY SERVICES BUSINESS SURETY BOND or Florida Money Transmitter Bond.
Why Do I Need This Bond?
A surety bond is made to protect the public. In basic terms, it guarantees your business will adhere to all laws and requirements in your industry. In the event your business conducts unlawful acts, a consumer of your services may file a claim on the bond.
Nearly any company that offers payment services requires a money transmitter bond. Due to a history of fraudulence and inaccurate money transmissions, state agencies now require this bond to protect consumers. While this bond does not protect the business owner, it offers proof that your business handles clients’ money responsibly.
Florida Money Transmitter Bond
In order to get your money transmitter’s business license, you’ll need a bond. This bond guarantees the money transmitter will abide by the laws and regulations stated in Chapter 560 of the Florida Statutes along with other Florida state laws.
- Required by: Florida Department of Banking and Finance
- Minimum bond amount: $50,000
- Maximum bond amount: $2,000,000
- Valid: Continuous until cancelled
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
The bond amount is must be equal to 2% of the total amount of finances handled by the business the previous fiscal year. For a new business, however, the bond amount must be 2% of the projected money handled. The exact bond amount should be verified with the Office of Financial Regulation before applying for the bond in order to guarantee the amount is correct.
Money Transmitter License
These are additional details about the licensing process that you should be aware of. (Only the bond is handled at Surety1, but this information will help you get your license.)
The state-issued application packet must be completed for a license. Fees for a license include a $40 filing fee, $375 application fee + $30 for every additional location. The licensing fees are required by the obligee, not the surety company.
The license application requires several supporting documents:
- Surety bond
- Financial documents for business
- Fingerprint card
- Legal name and residential address of applicant
- Proof of required net worth
- Applicant’s written anti-laundering program
The license application can be completed online using the Nationwide Mortgage Licensing System (NMLS).
Businesses that are not conducting multi-state businesses, or those that do not want to use the electronic application system, can also have access to other application forms. Money transmitters in Florida must also register as a money services business (MSB) with the Federal Crimes Enforcement Network (FinCEN). The registration process must be completed by the Bank Secretary Act (BSA) e-filing system.
Learn more at the Florida Office of Financial Regulation.
How do I get a Florida Money Transmitter Surety Bond?
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2 -Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.